CDBG-DR Eligibility Requirements

HUD provides flexible grants to help cities, counties, and States recover from Presidentially declared disasters, especially in low-income areas, subject to availability of supplemental appropriations.

In response to presidentially declared disasters, Congress may appropriate additional funding for the Community Development Block Grant (CDBG) Program as Disaster Recovery grants to rebuild the affected areas and provide crucial seed money to start the recovery process. Since CDBG Disaster Recovery (CDBG-DR) assistance may fund a broad range of recovery activities, HUD can help communities and neighborhoods that otherwise might not recover due to limited resources. Disaster Recovery grants often supplement disaster programs of the Federal Emergency Management Agency, the Small Business Administration, and the U.S. Army Corps of Engineers. In addition, HOME Disaster Recovery grants can provide an important resource for providing affordable housing to disaster victims.

Eligible Grantees

CDBG-DR funds are made available to states, units of general local governments, Indian tribes, and insular areas designated by the President of the United States as disaster areas. These communities must have significant unmet recovery needs and the capacity to carry out a disaster recovery program (usually these are governments that already receive HOME or CDBG allocations). At times, supplemental appropriations restrict funding solely to states rather than the local cities and/or counties.

Eligible Activities

Grantees may use CDBG-DR funds for recovery efforts involving housing, economic development, infrastructure and prevention of further damage to affected areas. Use of CDBG-DR funding cannot duplicate funding available from the Federal Emergency Management Agency, the Small Business Administration, and the US Army Corps of Engineers. A duplication occurs when a beneficiary receives assistance from multiple sources for a cumulative amount that exceeds the total need for a particular recovery purpose.

Examples of these activities include:

  • Buying damaged properties in a flood plain and relocating residents to safer areas;
  • Relocation payments for people and businesses displaced by the disaster;
  • Debris removal not covered by FEMA;
  • Rehabilitation of homes and buildings damaged by the disaster;
  • Buying, constructing, or rehabilitating public facilities such as streets, neighborhood centers, and water, sewer and drainage systems;
  • Code enforcement;
  • Homeownership activities such as down payment assistance, interest rate subsidies and loan guarantees for disaster victims;
  • Public services;
  • Helping businesses retain or create jobs in disaster impacted areas; and
  • Planning and administration costs (limited to no more than 20 percent of the grant).

National Objectives

Eligible activities must meet at least one of three program national objectives: benefit persons of low and moderate income, aid in the prevention or elimination of slums or blight, or meet other urgent community development needs because existing conditions pose a serious and immediate threat to the health and welfare of the community where other financial resources are not available.

Eligible Beneficiaries

CDBG-DR grants primarily benefit low-income residents in and around communities that have experienced a natural disaster. Generally, grantees must use at least half of Disaster Recovery funds for activities that principally benefit low-and moderate-income persons. These can be either activities in which all or the majority of people who benefit have low or moderate incomes or activities that benefit an area or service group in which at least 51 percent of the populous are of low- and moderate-income.

HUD does not provide CDBG-DR funding directly to individuals or organizations. If you are interested in participating in this program, you need to contact your local municipal or county officials to find out how the program operates in your area. Participation requirements may differ from one grantee to another.

Find out who administers the CDBG-DR Program in your area.

If your government officials cannot answer your questions, or if you are a government official, contact the HUD CPD Specialist for your state. Note that the CDBG-DR grantee administers the program and determines which projects receive funding.

Action Plans and Citizen Participation

Eligible governments must develop and submit an Action Plan for Disaster Recovery before receiving CDBG-DR grants. The Action Plan must describe the needs, strategies, and projected uses of the Disaster Recovery funds. Disaster recovery waivers may include a streamlined citizen participation process relative to Action Plans and removing these plans from the grantee’s regular Consolidated Plan needs assessments.